PSEi hits four-month high amid unchanged monetary stance

MANILA, Philippines  -The benchmark Philippine Stock Exchange index (PSEi) saw its highest close in four months as investors weighed potential rate cuts in 2024 after central banks in the Philippines and US kept key interest rates steady on Thursday.

The PSEi rose 2.47 percent, or 154.74 points, to close at 6,410.48 while the broader All Shares index climbed 1.67 percent, or 55.82 points, to 3,394.96.

The US Federal Reserve held interest rates unchanged for a third straight meeting while policy makers signaled three interest rate cuts next year.

The Monetary Board also kept the policy rate of the Bangko Sentral ng Pilipinas (BSP) steady at 6.5 percent but will stay on guard against inflationary pressures.

“The BSP… continued to signal/reiterate the need to keep the key interest rates higher-for-longer or continued tight/restrictive monetary policy if necessary to help anchor both inflation and inflection expectations, especially in ensuring the achievement of the BSP’s inflation target of 2 to 4 percent and fulfill the price stability mandate,” Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said on Thursday.

Trading activity during the session swelled as 385.71 million shares valued at P6.78 billion changed hands while foreigners were net sellers amounting to P367.34 million, data from the stock exchange showed.

Most PSE subsectors rallied, with holding firms (+3.83 percent) and property (+3.52 percent) taking the lead while services slipped 0.4 percent.

Ayala Land Inc. was the top traded stock as it jumped 4.13 percent to P32.80 per share.

It was followed by International Container Terminal Services Inc., down 2.22 percent to P229.20; SM Investments Corp., up 5.17 percent to P875; SM Prime Holdings Inc., up 4.12 percent to P34.15; and BDO Unibank Inc., up 2.92 percent to P130.40 per share.

Ayala Corp. was up 4.61 percent to P681; Universal Robina Corp., up 2.07 percent to P118.60; Bank of the Philippine Islands, up 0.69 percent to P101.50; Century Pacific Food Inc., up 0.45 percent to P33.25; and Jollibee Foods Corp., up 3.81 percent to P245 per share.